Investors have sold off long-term Government bonds as uncertainty returns about the future of interest rates ahead of US inflation data this week.
The yield on 30-year German bunds hit their highest level since 2014 today as markets remained on the backfoot after strong employment data from the US on Friday.
The yield on 30-year UK gilts gained as much as nine points to 4.65pc. The coupon on 10-year bonds around the world were also moving higher.
US Federal Reserve governor Michelle Bowman said over the weekend that the central bank may need to raise interest rates further to bring inflation back down to the 2pc target. She repeated the comments at another event today.
It came after figures on Friday showed that the US added 187,000 jobs in July.
Bond markets have been reeling since last week, when a bigger-than-expected US Treasury bond auction plan sent 30-year yields to nine-month highs.
A decision by Fitch Ratings to cut the US credit rating have also fanned volatility on markets.
Pooja Kumra, senior European rates strategist at the Toronto Dominion Bank, said: “The door for further rate hikes from the Fed is still open.”
Read the latest updates below.
https://news.google.com/rss/articles/CBMiaWh0dHBzOi8vd3d3LnRlbGVncmFwaC5jby51ay9idXNpbmVzcy8yMDIzLzA4LzA3L2Z0c2UtMTAwLW1hcmtldHMtbGl2ZS1uZXdzLWhhbGlmYXgtaG91c2UtcHJpY2VzLW1vcnRnYWdlL9IBAA?oc=5
2023-08-07 16:37:58Z
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